New Delhi
The Free Trade Agreement (FTA) has been signed between India and the United Kingdom (UK) on bilateral trade. After this agreement, the UK’s big market will open for Indian products, while both presence and sales of British products will increase. But now it is being estimated that which country is going to benefit more from this deal, whereas right now only the documents have been signed.
Actually, this agreement between the UK is a ‘WIN-WIN’ situation for both countries. But India may have long -term benefits, as MSME and agriculture in its export sector will get strengthened in the global market. Also, opportunities will increase in Britain for Indian professional.
If we talk about the UK, then it is going to benefit immediate economic relief and access to the Indian market. The two countries aim to increase bilateral trade to $ 120 billion by 2030, which is the first target of the agreement. Britain is already an investor of $ 36 billion in India. The agreement is expected to invest further in areas such as manufacturing, automobile and electric mobility.
Trade target between the two countries
Let me tell you, trade between the two countries in the year 2023-24 was worth Rs 4.74 lakh crore (about 60 billion dollars), and India’s exports can increase by 60%. It is estimated that in the next 5 years, there may be a huge increase in exports to Britain in areas such as Indian garments, leather, gem-jewelery, marine products and automobile parts.
These products will sell a lot in Britain
This agreement will levy zero charges on more than 95% agriculture and food products associated with it, which will increase agricultural exports, will give strength to the rural economy. Agricultural exports are estimated to increase by more than 20% in the next three years, which will contribute to India’s target of $ 100 billion exports by 2030. The fee in India on 90% of UK products will be removed or reduced. Indian spices, fruits, vegetables, and handicrafts will be cheap and more available in Britain. Scotch whiskey (150%to 75%, then 40%in 10 years), cars (100%to 10%), cosmetics, chocolate, biscuits, salmon fish, and medical devices will be cheap in India.
Big opportunities for farmer
This will open the premiums of the British market for Indian farmers, which will be equal to or even more than the benefits of Germany, Netherlands and other European Union countries. Turmeric, black pepper, cardamom, pickle and pulses will also get a fee-free access. While Britain’s export (whiskey, cars, medical equipment) to India can also increase by 60%. The goal is that the trade processes between the two countries make the trading processes simple and digital, which will reduce trade costs.
This deal is also a part that industries like textile, leather, and gemstone-jewelery in India will increase the opportunities. The MSME sector, especially regional handicrafts such as Kolhapuri Chappal and Banarasi saree, will get an edge in the UK market. Thousands of jobs will also be born in Britain, especially in whiskey, automobile, and medical equipment sector.
India’s 99% exports will get a fee-free access in Britain, on which 4-16% fees are currently charged. This will greatly benefit areas like textile, leather, shoes, gems-jewelery, sea products, automobile parts, and electric vehicles. Especially agricultural and marine products (such as shrimp, tuna, spices, turmeric, jackfruit, millet) will get more than 95% fee-free access, which is expected to increase agricultural exports by 20% in the next 5 years.
Power of Make in India
It is expected that after 5 years, this agreement will strengthen ‘Make in India’ and women entrepreneurship in India, as the agreement emphasizes gender equality and labor rights. Under the deal, Indian professional (eg IT, health, yoga instructor) will benefit from three years exemption in temporary visas and social security contribution in Britain. Whereas after 5 years, about 100 additional annual visas and increased labor mobility will give Indian youth more opportunities in Britain. More than 60,000 IT professionals will be able to work through temporary visas in Britain.
Expansion of economic and strategic partnership
This agreement will not be limited to trade only. By the year 2030, after 5 years, India and Britain will increase cooperation in areas like defense, technology, education, climate, and innovation under ‘UK-India Vision 2035’. However, at the moment, who will benefit more, it is complex, because both countries will get significant benefits in different areas.
